Hydrostor, a leading developer of Advanced Compressed Air Energy
Storage (A-CAES) projects, announced today the closing of US$37
million (C$49 million) in growth financing. RBC Capital Markets
acted as Hydrostor’s advisor on the transaction.
Meridiam, the global developer, asset and fund manager
specializing in sustainable infrastructure and energy transition
projects, has formed a strategic partnership to support the
origination and development of Hydrostor projects. Elisabeth Hivon,
partner at Meridiam, has joined Hydrostor’s Board of Directors.
Renewable energy developer and independent power producer
Elemental Energy participated in the fundraising. Hydrostor also
received additional funding from existing investors including Canoe
Financial, ArcTern Ventures, MaRS Catalyst Fund and Lorem Partners.
The financing included a combination of equity, debt, project
development and cash commitments, and an asset acquisition.
Energy Technology company Baker Hughes, a GE Company (BHGE),
will also be a strategic partner. BHGE’s turbomachinery technology
forms a critical part of the overall A-CAES system, and as part of
the agreement, BHGE will supply electric motor compressor and
turbine generator solutions for Hydrostor’s projects globally.
Hydrostor expects to use the financing to complete construction
of its second commercial reference facility, its Angas Project in
Australia, and to advance the company’s pipeline of large-scale
A-CAES projects. Those projects represent over 2 GW and 16
gigawatt-hour (GWh) of deployment potential in the USA, Canada,
Chile and Australia, while the company expands opportunities with
significant global project potential across many other markets.
“Hydrostor’s A-CAES is well positioned to capitalize on the
growing demand for flexibly-sited, long-duration energy storage as
power grids continue to decarbonize and adapt to higher
penetrations of intermittent renewable energy,” said Hydrostor CEO,
Curtis VanWalleghem. “This funding will enable our development team
to continue advancing the late-stage projects we have under way. We
are thrilled to collaborate with, and benefit from, the expertise
of Meridiam in project development and financing; BHGE’s
industry-leading technology, service capabilities and commitment to
advancing low-carbon solutions; and Elemental Energy’s renewable
project development and operations experience.”
“Meridiam is thrilled to be joining Hydrostor in the development
of its future A-CAES projects in Canada, the USA, Australia and
Chile. We believe that the unique expertise of our two firms,
combined with the know-how of other strategic partners, will
position our team for success in developing numerous projects which
will improve renewable energy reliance and contribute to the
reduction of greenhouse gas emissions,” said Elisabeth Hivon, new
board member representing Meridiam.
The funding announcement comes on the heels of recent milestones
associated with Hydrostor’s Angas A-CAES Project in South
Australia. That project has achieved permitting approval, started
construction and received AUD$9 million in combined funding from
the Australian Renewable Energy Agency’s (ARENA) Advancing
Renewables Program, and the South Australian Renewable Technology
Fund (separate from and additional to this financing). The
company’s other commercial reference system is the Goderich A-CAES
Facility in Ontario, Canada, which is contracted to the province’s
grid operator, IESO, and expected to be operational in the next
month. The Goderich Facility was recently selected as a finalist
for this year’s Energy Storage North America (ESNA) Innovation
Award.
In recent weeks some of the most significant single investments
ever made in energy storage have been in companies focused on
long-duration technologies that can address immediate, high-value
opportunities. According to research firm Wood Mackenzie, global
energy storage deployments will grow thirteenfold over the next six
years, from a 12 GWh market in 2018 to a 158 GWh market in 2024.
Such growth “will include a shift from short-duration systems
providing high-value, but limited-size markets such as frequency
regulation, to long-duration systems that can start to displace
diesel, oil and natural-gas peaker plants.”
About Hydrostor
Hydrostor is a developer of utility-scale energy storage
facilities that can be flexibly sited using its proprietary
Advanced Compressed Air Energy Storage (A-CAES) technology and
purpose-built underground storage caverns. A-CAES is unique as a
grid storage solution: it provides long-duration storage like
pumped hydro, but has the key advantage of being able to be
flexibly sited where the grid needs it, allowing the targeting of
high-value (and immediately available) grid applications like
transmission deferral and fossil plant replacement. The technology
operates very similarly to a gas plant but is entirely
non-emitting, is much more cost-effective than batteries at scale
with a 50+-year asset life, and is ideally suited to providing the
long-duration storage resource necessary for decarbonizing the
grid. Hydrostor has three projects in operation or under
construction in Canada and Australia, and numerous utility-scale
projects ranging in capacity from 20 – 500 MW and duration from 4
to 24 hours, in various development stages across the USA, Canada,
Chile and Australia. www.hydrostor.ca
About Meridiam
Meridiam was founded in 2005 by Thierry Déau, with the belief
that the alignment of interests between the public and private
sector can provide critical solutions to the collective needs of
communities. Meridiam is an independent investment firm
specializing in the development, financing, and management of
long-term and sustainable public infrastructure projects and assets
in the mobility, energy transition and social infrastructure
sectors. With offices in Addis Ababa, Amman, Dakar, Istanbul, New
York, Luxembourg, Paris, Toronto and Vienna, Meridiam currently
manages 7 billion Euros of assets, and more than 70 projects and
assets to date. Meridiam is certified ISO 9001: 2015, ISO 26000
Advanced by VigeoEiris and operates on a proprietary methodology in
relation to ESG and impact based on UNSDGs. www.meridiam.com
Twitter: Meridiam
About Baker Hughes GE
Baker Hughes, a GE company (NYSE: BHGE) is the world’s first and
only fullstream provider of integrated oilfield products, services
and digital solutions. We deploy minds and machines to enhance
customer productivity, safety and environmental stewardship, while
minimizing costs and risks at every step of the energy value chain.
With operations in over 120 countries, we infuse over a century of
experience with the spirit of a startup – inventing smarter ways to
bring energy to the world.
About Elemental Energy
Elemental Energy is a developer, investor and operator of
renewable energy projects, with interests in operating and
development stage wind, solar, and hydro projects throughout North
America. Elemental accelerates the transition to a clean energy
economy through projects that generate long-term financial returns,
environmental benefits for the planet, and positive social impacts
for the communities in which we work.
Contact
Eugene Hunt Trevi Communications for
Hydrostorgene@trevicomm.com+1 978.376.3833
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/61f65102-1239-4480-accb-a88acf65b6a8
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